Temple’s credit rating with S&P improves
Temple has improved its grade from Standard & Poor’s Ratings Services, receiving an A+ during its most recent evaluation.
In granting the enhanced rating, evaluators from Standard & Poor’s conducted a comprehensive review of the University’s recent history and looked at its likely future. The improved rating was delivered in a report issued May 6.
“Temple’s achievements over the last several years have had an impact throughout the University, and this is a real endorsement of our overall direction and financial strength,” said Martin Dorph, vice president and chief financial officer. “We’ve worked hard for this, and it is gratifying to receive this level of recognition from Standard & Poor’s.”
The last rating by the company was an A given in 2001.
In its most recent report, Standard & Poor’s said that “the upgrade reflects improvements in a number of areas, such as a larger applicant pool and increasing student quality, growing enrollment, growth in sponsored research, a modernized campus infrastructure, and growth in private gift-giving to the university.”
Specifically, the company cited progress in three critical areas:
• The “solid demand” for comprehensive academic programs on both the undergraduate and graduate/professional levels.
• A strong mix of tuition, private gift-giving, sponsored research, and state support.
• “Good liquidity relative to both operating expenses and debt.”
Standard & Poor’s said the University’s “stable outlook reflects the expectation of a continuation of favorable financial performance and steady demand.”
The improved rating from Standard & Poor’s comes just one year after the nation’s other large ratings service, Moody’s, upgraded Temple’s long-term underlying debt rating from A2 to A1.
Moody’s was similarly upbeat, predicting that “Temple University will maintain favorable student demand for the foreseeable future given its position as the Philadelphia area’s principal public university, large enrollment and significant program diversity.”
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